Fixed rate ends 31 October - help

harassedmumof4

Hope someone out there can give us a bit of advice. We moved house 2 years ago and we had a fixed rate of just over 4%. I know it was a great rate and I knew there was going to be a jump when we came to renew it, but, we need to add about £15k on top of our £60k mortgage. We have been to see out mortgage advisor (who is brilliant) but our payments are still practically doubling every month. We can't put off the work that needs done in the house and can't afford a short term loan. We have more than enough equity on the house as well. The new rate we have been offered is 7.something and we can fix it for 2, 3 or 5 years. We really don't know what to do, and we would appreciate ANY advice.

Thanks in advance.

Gorgeous_George

Change your brilliant adviser for one who can find a 6. something rate.

GG

herbiesjp

7.something seems high

What would be the new mortgage amount you need? What is the property value?

What is your gross yearly income?

Do you have any other debts? Do you have a good credit history?

harassedmumof4

Hi.

The mortgage amount would be £75K
Property value is around £110k
My husbands salary is around £23k
The only other debt we have is our car and we have a good credit history. We have a small amount on a visa but we will pay that off when the money comes through.

herbiesjp

How much do you pay each month on the car loan?

How much do you have outstanding on the visa?

Mr_helpful

I would get rid of brilliant adviser 7% is in the adverse bracket there are plenty of fixed rates below 6% and plenty with free legals and valuation.

harassedmumof4

The car loan is £21o a month and there is about £1000 outstanding on the visa.

herbiesjp

harassedmumof3 wrote: »

The car loan is £21o a month and there is about £1000 outstanding on the visa.

The £210 pm will reduce your assessable incoem by £2520, the card balance also a little bit more

You are looking at the high side for income multiples, however the loan to value is good at less than 70%

There may well be some lenders that could look at this for you, and agree deals better than the 7% offered. DO you know which lender has been offered to you, and if the broker has applied to any other lenders?

silverbullit

I would recommend that you first use this mortgage search engine to see the sort of offers that may be available to you; after a cursory search with the details you have submitted, it would seem that there may be better offers available to you than the one currently offered by your mortgage advisor.

Search engine link- http://www.fool.co.uk/mortgages/search-all-mortgages.aspx?Site=UKFool&source=

I would also recommend that you get some advice from the broker London & Country ( http://www.lcplc.co.uk/ ). They offer a free, no-obligation, full market mortgage broker service which i have used in the past. They really do offer some very helpful advice. Here's a link to some testimonials from other satisfied customers- http://www.lcplc.co.uk/standard_2_doc_columns_1.aspx?id=1:29961&id=0:27147&id=0:21989 . I promise i'm not associated with either of these organisations; it's just that i found them very helpful when i was looking for a mortgage and didn't have a clue where to get some advice.

Good luck!

harassedmumof4

Thanks for all your help everybody. :T

The deal we have been offered is with Nationwide.

I'm going now to check the links you gave me silverbuilt, but I will be back later.